HI SB1360

Adds new withholding requirement in Chapter 235, Hawaii Revised Statutes, requiring partnerships, estates, and trusts to withhold taxes on income of nonresident partners and beneficiaries at the highest marginal tax rate for nonresidents.

Withheld amounts must equal the highest marginal nonresident tax rate multiplied by the taxpayer's distributive share of income attributable to Hawaii, to be paid to the department of taxation as prescribed.

Exempts publicly traded partnerships as defined under Internal Revenue Code section 7704(b) from the withholding requirement, though they must file annual information returns with the department reporting unit holder names, addresses, taxpayer identification numbers, and other requested information.

Modifies section 235-66 to include the new withholding provision among those whose withheld amounts are credited against income tax liability and subject to refund if in excess of tax due.

Effective for taxable years beginning after December 31, 2018.